Sage 300 - P/O Invoice Variance and Approvals

P/O Invoice Variance is a feature set developed by SageAPA to assist accounting teams and approvers to visibly see and control what happens when values on a P/O Invoice has variance compared to it's matched P/O(s). 

What is considered variance?

Variance in SageAPA is defined as a difference between the receiving data imported from Sage 300 and P/O Invoice in SageAPA.

For example you've matched an imported P/O to an Invoice in SageAPA. You've adopted receiving lines from the Purchase Order to the Invoice and then adjusted values such as Unit Cost, Qty or Total. This creates a variance between what received and what being Invoiced by vendor.

Why use P/O Invoice Variance Approval Channels?

Many of our customers use variance approval channels to control what happens to a P/O Invoice when values have been adjusted to a new value that breaks their tolerance.  

We give you the ability to set a percentage value that is within your tolerance remit as often companies have a tolerance for variance on their P/O Invoices, usually up to a certain percentage.

For example, it's very common when dealing with liquids to expect a variance between what was ordered, received and invoiced.
Giving you the ability to set a tolerance ensures that P/O Invoices which remain inside your tolerance aren't being obstructed in the approval process. Whereas P/O Invoices which do break that tolerance are escalated to the appropriate approvers for review.

This functionality will empower your accounting team & approvers to make quick decisions on how to proceed in these scenarios.

How is P/O Invoice Variance visualized in SageAPA?

1. Invoice Details View

Once you've matched an Imported P/O from Sage 300 to an Invoice in SageAPA, you'll have the ability to adopt the receiving line linked to the P/O unto the P/O Invoice.
After adopting the receiving lines to the P/O Invoice, you can then adjust the Unit Cost, Qty or Total Amount on the P/O Invoice.

(Please note the Qty value adopted form a P/O line to a Invoice Line is the Qty Received value (from the P/O imported from Sage 300) MINUS the Qty already Invoiced in SageAPA.

When you adjust the values in either the Unit Cost, Qty or Total field. The cells will highlight in Red to indicate the value has been changed after adoption.

If you hover over the cell containing the adjusted value a window will display showing you the original value, adjusted value and variance percentage between those values.

2. In a Tab view
When you're in a Tab view such as the In Progress, Approvals, Export Tab etc. You can quickly and easily tell when a P/O Invoice has variance or not.

You'll see next to the "P/O Match" icon there is a small "Truck" icon. This indicates that the P/O Invoice has adopted receiving lines. If the color of the truck is black then
that means there is no variance. If the truck is Red in color, then you'll know the P/O Invoice has variance.

How do I control what happens when there is variance?
You can control what happens when there is variance in SageAPA through your Invoice Approval Channels. You can create approval channels and include a variance percentage tolerance on Quantity, Unit Cost or Total (line total) as a criteria for the channel. 

For best results we recommend using either of the following combinations for variance controls: "Quantity", "Unit Cost", "Quantity and Unit Cost" or "Total".  

Notes:

1. Variance currently only applies to Imported Sage 300 P/O's, it does not apply to P/O's created in SageAPA.

2. "Total" variance in the approvals channels applies to the line total of the Invoice. It doesn't apply to the entire P/O Total vs the P/O Invoice total. 

Please see the following guide on How to setup P/O Variance Approval Channels